1990 (7) TMI 212 - AT - Customs

Tribunal upholds customs duty assessment for Honda Accords, penalties imposed for undervaluation and evasion

The Tribunal upheld the customs duty assessment based on the actual purchase price of imported Honda Accord cars, rejecting the Customs authorities' ... Confiscation Issues:1. Valuation of imported cars for customs duty assessment.2. Misdeclaration of car details in the Bill of Entry.3. Confiscation and penalty imposition for customs duty evasion.4. Penal action against the Automobile Consultant involved in the import process.Analysis:Issue 1: Valuation of imported cars for customs duty assessmentThe appellants imported Honda Accord cars under Transfer of Residence Rules. The declared value in the Bill of Entry was contested by the Customs authorities. The appellants argued that the actual purchase price should be accepted as the assessable value, supported by invoices and receipts. The Collector valued the cars higher without disclosing the basis, leading to a denial of natural justice. The Tribunal held that in the absence of evidence contrary to the purchase price, the declared value should be accepted for customs duty assessment.Issue 2: Misdeclaration of car details in the Bill of EntryThe appellants misdeclared the value and model year of the imported cars in the Bill of Entry to evade customs duty. The correct purchase price was not declared, leading to undervaluation. The Tribunal found the misdeclaration to be significant, resulting in a discrepancy between the declared and actual values, justifying a penalty.Issue 3: Confiscation and penalty imposition for customs duty evasionAlthough the cars were not subject to absolute confiscation, the misdeclaration warranted a penalty. The Tribunal modified the confiscation order, allowing the appellants to redeem the cars on payment of a fine and customs duty. The appellants were held responsible for the misdeclaration and were imposed a personal penalty, which was reduced based on the circumstances of the case.Issue 4: Penal action against the Automobile ConsultantThe Automobile Consultant, involved in the import process, faced penal action for his role in the misdeclaration. The Tribunal dismissed his appeals and confirmed the penalty, considering the gravity of the offence and the evidence implicating him in the misdeclaration scheme.In conclusion, the Tribunal upheld the customs duty assessment based on the actual purchase price, modified the confiscation order, imposed fines and penalties on the importers for misdeclaration, and confirmed penal action against the Automobile Consultant involved in the import process.